News broke this morning that Microsoft has made a $5 billion investment into Australia in the name of digital infrastructure, the ‘AI opportunity’, and cybersecurity. It’s a lot of money – the most money the company has ever spent in Australia in its entire 40 years of being here.
This deal isn’t exactly out of the blue entirely. Speaking of blue, the Australian government had been very reliant on the services of IBM for a very long time – it’s easier to upgrade than replace ageing IT systems, after all. But in recent years, Microsoft has been slowly but steadily taking over. Microsoft also came to the rescue of Australia when Google threatened to take news away as part of the hoo-ha surrounding the Media Bargaining Code. But all of that is only the surface and to expand further would need another 10,000 words, so we’ll get back to today’s announcement – Microsoft is pumping $5 billion into Australia. It’s an unfathomable amount of cash.
“This is a major investment in the skills and workers of the future, which will help Australia to strengthen our position as a world-leading economy,” Prime Minister Anthony Albanese said.
The investment will go to expanding Microsoft’s hyperscale cloud computing and AI infrastructure in Australia over the next two years. This cash will also be spent on growing Microsoft’s local data centre footprint from 20 sites to a total of 29 (in Canberra, Melbourne, and Sydney).
But wait, there’s more. Microsoft is also working with TAFE NSW to establish a Microsoft Datacentre Academy in Australia. The company will also extend its global skills programs to over 300,000 more people, with the program touted as giving Aussies the “capabilities they need to thrive in a cloud- and AI-enabled economy”.
But the massive part is the cybersecurity element. The blurb from the Redmond giant is:
Microsoft will collaborate with the Australian Signals Directorate (ASD) on an initiative called the Microsoft-Australian Signals Directorate Cyber Shield (MACS), aimed at improving protection from cyber threats for Australian residents, businesses and government entities. As part of this partnership, Microsoft will work with ASD to build fit-for-purpose, next-generation cybersecurity solutions.
The director general of the ASD Rachel Noble said the investments would build on the agency’s “strong partnership with Microsoft and will turbocharge our collective capacity to protect Australians in cyber space.”
“A strong economy requires protection from cyber threats. I welcome Microsoft’s collaboration with the Australian Signals Directorate to enhance cybersecurity for households and business,” Albanese added of Microsoft’s cybersecurity investment in Australia.
The announcement was made while Albanese was in the U.S. meeting with Microsoft vice chair and president Brad Smith, and Microsoft Australia and New Zealand managing director Steven Worrall.
Image: Ted S. Warren/AP Photo